Persistent Problems Plague Reserve Square Apartments Under Receivership

Tenants at Reserve Square Apartments report that critical repairs are still lacking, contradicting claims of progress made by the building's receiver and pressure from Cleveland City Hall. Residents state the downtown complex, located east of Perk Plaza, still has a long way to go to meet promised fixes eight months after falling into receivership.

The complex has been managed by a receiver since August, following a foreclosure filing in July. The initial complaint alleged that the owner, K&D, had approximately $78 million in outstanding loans, interest, and tax advances. This situation has left many residents dissatisfied with the general state of maintenance.

City Hall Demands Swift Action

On February 9, the City of Cleveland sent a letter to the judge overseeing the federal case. The letter urged Judge Bridget Brennan to push the receiver, Andrew Hayman, to resolve numerous complaints promptly. These issues included a flooded parking garage, messy hallways, frequent fire alarms, malfunctioning water heaters, and bed bug infestations.

Building & Housing Director Sally Martin O’Toole emphasized the urgency in her correspondence. She wrote, “Time is of the essence, and we feel compelled to try to ‘fast-track’ this in any way possible.” O’Toole further noted that despite Hayman promising orders were placed for the faulty furnace, “we have not seen substantive repairs being made in the building,” concluding that “the conditions continue to be hazardous.”

Context of Foreclosure and Occupancy

Reserve Square’s foreclosure occurred during a difficult period for lower-income complexes, exacerbated by inflation and visa policy shifts under the Trump administration. As of mid-February, only half of the building's 976 total units were occupied. The city prosecutor had already filed 20 first-degree misdemeanor charges in a separate criminal case for neglecting work orders in November and December of the previous year.

Partial Progress vs. Resident Grievances

Court documents indicate some improvements since February 12, when Hayman began submitting weekly repair reports. Four of the seven boilers are now operational, random fire alarms have ceased, and tenants generally have hot water. Furthermore, one report suggests the flooded parking garage is “not expected to be a recurring issue.”

However, five tenants interviewed recently expressed only partial satisfaction with the repairs. While all confirmed having working water, cleaner hallways, and effective new security staff, they detailed numerous ongoing concerns regularly ignored by the leasing office. These included incomplete bed bug treatments, unusable trash chutes, and elevators that could not be called from the first floor.

Tenants Describe Ongoing Hardships

One resident described the severe impact of the heating failures. “All the whole winter, we are using the manual heaters,” he stated outside the west entrance. His roommate added, “We covered ourselves with comforters. We were wearing jackets and everything.”

Naresh, 23, subleased his room a month early to move elsewhere, citing issues with failing heat, running water outages, and unwelcome guests in the lobby. “One day I was out of water,” Naresh reported near the east entrance. A fourth tenant, a Cleveland State junior, noted that while his heat and bed bug issues were resolved, he was concerned about new security staffing.

This junior tenant mentioned, “Like, they don’t allow friends. My friends want to come to my room, want to hang out, want to chill, and they say no.”

Official Response and Legal Status

A city spokesperson acknowledged that recent complaints regarding heat and elevators were “fairly accurate.” The city intends to use both the ongoing criminal case and the federal foreclosure proceedings to pressure Hayman toward more timely building improvements. The spokesperson asserted, “If you’re a landlord in the city... you have a duty and responsibility to upkeep and maintain your buildings.”

In February, Jeanna Weaver, a lawyer representing Hayman, assured Judge Brennan that all documented problems—including plumbing, security, and roach infestations—were being addressed methodically and efficiently, prioritizing resident safety.